The targets for the third wave that is in progress from 8,047 trough are 39,337, 58,743 and hold your breath, 90,160. This wave can terminate at either of these targets and our preference veers towards the second. Extrapolation of the move that began from 1980 low also gives us a Sensex target in the 6-digit.

And the time when these can be achieved…Wave 1 took six years and three months. Wave three can be at least as long or 1.618 of wave 1. That gives us mid- 2015 or mid-2019. That is, the next decade is going to be good for Indian equities. The long-term outlook will be roiled only if the Sensex goes on to close below 13,000. If corrections halt above 16,000, that would reinforce the positive long-term view for the index.